US Dollar Weakens Slightly, Energy Risks Limit Pressure
The US dollar weakened slightly to around 101 in trading on Thursday (July 23), continuing its limited decline from the previous session. This movement occurred as market participants reconsidered inflation concerns due to surging energy prices, with the US economy starting to appear softer.
The market still widely expects the Federal Reserve to keep interest rates unchanged at its meeting next week. However, uncertainty about the next policy direction is increasing as new Fed Chairman Kevin Warsh has not provided clear guidance.
Despite the weakening, the US dollar's decline remained limited due to continued demand for safe-haven assets. Middle East tensions have again become a major focus, particularly after President Donald Trump said the US would attack Iranian infrastructure if an attack on ships in the Strait of Hormuz occurred.
Iran has also warned that it will retaliate by attacking regional energy and infrastructure targets. Meanwhile, the attack on a tanker in the Red Sea, the first such incident since late February, has further heightened concerns about a wider regional conflict.
In terms of market impact, the US dollar has the potential for limited movement in the short term. Pressure from a softer US economy could curb the greenback's gains, but geopolitical risks, surging energy prices, and concerns about global trade disruptions could still support the dollar as a safe haven asset. If oil prices continue to rise, the market will again be at risk, focusing on inflation and the Fed's interest rate direction. (asd)
Source: Newsmaker.id
